IoT And Millennials

The much studied Millennial generation has some issues with Internet of Things (IoT) devices. A new survey says this cohort of young American adults—ages 18 to 29—is the least likely to own an IoT product. This trend presents a challenge for utilities attempting to promote programs like demand response that can link to IoT products such as smart thermostats, air conditioners, or appliances.

According to the study conducted by the Association of Energy Services Professionals and strategic marketing firm Essense Partners, 85% of Millennial respondents do not own IoT devices. The percentage of non-IoT device owners in the other age groups is as follows: 79% for ages 30-44; 81% for ages 45-59; and 84% for the 60 and older group. The study was conducted among 2,700 consumers.

The much studied Millennial generation has some issues with Internet of Things (IoT) devices.

Navigant

Among respondents who do own IoT devices, the Millennials also represent the least likely cohort to take part in utility programs. They participate at half the rate of those in the 30-44 and 45-59 age groups, and almost a third of the rate compared to the 60 and older set.

Of course, the main reason for lower ownership of IoT devices among Millennials is they are less likely to be homeowners. Therefore, they are not as likely in the market to buy IoT devices that can help manage energy usage.

But there is another reason lurking around the edges: they are worried the most about the devices being hacked. In a survey conducted by KPMG, 74% of Millennials say they would use more IoT devices if they had more confidence that the devices were secure. Among the other age groups, 63% of Generation Xers hold the same view about device security and nearly half of Baby Boomers (47%) say the same.

Part of the Solution: Device Security Standards

One way to boost confidence among consumers and drive adoption of IoT devices is for industry stakeholders to agree on security standards. An effort that has surfaced recently is being spearheaded by Consumer Reports (CR), which is promoting a digital consumer protection standard, along with its cyber expert partners (digital privacy tools provider Disconnect; privacy policy researcher Ranking Digital Rights; and Cyber Independent Testing Lab). The CR privacy standard has four key features: products should be built to be secure; products should preserve consumer privacy; products should protect the idea of ownership; and companies should act ethically. The full standard is in its first draft, and CR expects stakeholders to help shape and improve it going forward.

The need is evident for IoT device security standards such as CR’s and others like NIST’s Cybersecurity for IoT program and UL’s Cybersecurity Assurance Program. Navigant Research applauds these efforts to create standards, as noted in its report, Emerging IoT Business Models. Utilities would be wise to get behind these efforts as well to ensure that their customers, including skeptical Millennials, gain the confidence to adopt devices like smart thermostats and feel more willing to take part in demand-side management programs.